Wednesday, February 4, 2015

Economy: Gasoline - Unions Versus Car Drivers

(Drivebycuriosity) - Today US average gas prices jumped more than four cents (plus 2%) - the largest one-day spike since August 2012, reports AAA (fuelgaugereport). This is odd, because oil prices (Brent Crude) fell $2.90, around 5%, as a response to a jump in the US oil inventories which climbed on a record high (marketwatch).

The culprits for rising gasoline prices aren´t the oil sheiks. Saudi Arabia is continuing its production, at least for now, and Iraq, Iran and other oil suppliers are pumping more than last year. The reason for today´s price jump is a strike at the U.S. refineries (reuters).

Because of the strikes some refineries are shut down, others reduced production of gasoline, diesel, heating oil and other oil products. These strikes are reducing now the supply of gasoline in the US which causes the price hike of the recent days.

I seems that some unions are flexing their muscles to enforce the interests of their members at the cost of the economy.